1981 (6) TMI 64

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....registered under s. 12A of the IT Act, 1961, and to give due opportunity to the assessee for filing audited statement of accounts for the relevant previous year in the prescribed form, ignoring the fact that the conditions mentioned in cls. (a) and (b) of s. 12A of the Act are cumulative and that they both have to be satisfied if the provisions of s. 11 and s. 12 of the Act are to apply to the case of the assessee Trust, and in allowing the assessee's appeal to that extent." 2. The appeals are directed against the consolidated order dt. 25th March, 1980 of the Appellate Asstt. CIT ("AAC" for short), by which he has directed the ITO ("ITO" for short) to reframe the assessment after giving the assessee an opportunity of filing the audited ....

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.... the prescribed form could be filed. It was claimed before the AAC that the ITO did not give any opportunity to the assessee, to produce those forms. The AAC considered the arguments and submissions made before him and held that since the ITO has not give adequate opportunity to the assessee, it was only fair that the matter should go back to the ITO, especially when the trust was registered under s. 12A by the CIT. Accordingly, he set aside the order of the ITO with a direction to redo the assessment in accordance with law, having regard that the assessee trust was registered under s. 12A and to give opportunity to the assessee to file audited statements in the prescribed form. It is against that consolidated order of the AAC that the Reve....

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....ed out that the ITO has wrongly taken the gross receipts to be the income of the assessee without taking into account the expenditure. If a proper computation of the income of the assessee is made for all the years; then the net income would be far below Rs. 25,000 and under such circumstances, s. 12A does not have any applicability. It is urged that the income has to be computed under the provisions of the IT Act and not only the gross income. It is submitted that the AAC has correctly considered the arguments of the assessee and proper instructions and directions were given by him so that proper computation and assessment could be made. At the time of hearing, it is submitted by the ld. counsel for the assessee that the AAC was requested ....